Andre Yoskowitz
27 Sep 2013 22:37
HTC has announced that it will be selling back its remaining stake in headphone/audio tech company Beats Electronics.
The company will sell its remaining 25 percent stake for $265 million, making a large $85 million profit for a two year investment.
In addition, Beats will repay a $150 million promissory note, plus any accrued interest.
Two years ago, HTC took a 51 percent stake in the company for $300 million, and they began integrating the tech into their smartphones and even bundled some lower-end Beats headphones with many of their devices.
HTC, after having a number of extremely profitable years and market share growth, has collapsed, with shares falling over 90 percent since 2011. The company even warned that it may have its first quarterly loss since 2008.
In an effort to become relevant again, the company has hired Robert Downey Jr. to promote its smartphone brand through a new marketing initiative.